Indiana Marital Property Division

When a couple gets divorced, all results from the marriage
must be sorted out by the courts. In a divorce
case, the courts must turn the 1 household that existed during the marriage
into 2 separate households. A universal
issue for the courts to tackle is property division, specifically Indiana
property division.

A divorcing couple should each retain a separate Family Law
attorney. This is because property
division laws can be complex and lawyers have the proper training/experience to
tell the judge what a divorcing spouse wants and/or needs from the property division.

Property Division Divorce
Laws in Indiana

The purpose of property division laws is to make sure that
marital property is allocated to each spouse equally, generally in a 50-50
split. However, if a 50-50 split would
not be equitable under Burns Ind. Code Ann. §31-15-7-5, the trial court may
divide the property in a more equitable fashion. The trial court judge receives great
discretion when converting Indiana marital property into separate Indiana
divorce property.

Indiana is an equitable distribution state. This typically means that with regard to
Indiana divorce assets, anything the spouses had prior to a marriage usually
will not be included in Indiana divorce assets or Indiana divorce property.

However, separate & non-marital property may be included
in Indiana property division under Burns Ind. Code Ann. §31-15-7-4(a).

What is considered Marital and Non-Marital Property?

Indiana marital property consists of all items acquired
during the marriage by either spouse as well as separate items that were
brought into a marriage and converted into marital property.

Non-marital property is classified as property that each
spouse had before the marriage or acquired individually without including it
into the marital property.

Ultimately, the court will decide whether particular property
will be included in the property division and the distinction of marital vs.
non-marital property alone is not enough to prevent a particular piece of
property from being part of the property division.

Dividing Assets and Debt

After the court decides which property is available for
distribution, the next step is property valuation. The final step is the allocation of marital
property in a 50-50 split or another type of split allowed under Burns Ind. Code Ann. §31-15-7-5.

Using a number of factors, including the consideration of
tax consequences, judges decide how a marriage's assets should be divided. Here is a list of the most common property
items and the most common allocation scheme used.

Cash: Divided equally among the spouses.

Example 1: A joint savings
account has $5,000. The court would most likely award $2,500 to each spouse.

Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The
amount will likely be divided 50-50 or may be more balanced if the $1,000 contributor has fewer assets than the $4,000
contributor.

Retirement Plans: Divided equally based
on the duration of the marriage at the time the benefits accrued, looking at
the present value of the plan and/or survivor benefits.

Example 1: A spouse got benefits in a retirement plan after working
for 25 years and was married for 10 of those years.
The ex-spouse would be entitled to half of the retirement plan that was acquired during the marriage.

Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.

Vehicles: Divided based on the values as
determined by the court. May be sold or
given to a spouse outright.

Example 1: The title to a car
acquired during a marriage is in one spouse's name. The car may be sold with proceeds divided in a 50-50 split or divided
among the spouses in some way. Example 2: A boat has a
shared title. The boat may be sold with
the proceeds going to each spouse 50-50 or the boat may be given to a poorer spouse.

Insurance: Determined based upon each
spouse's health, availability of alternate insurance and premium payments from
marital income.

Example 1: One spouse has covered the other under employer health
insurance. The other spouse is in poor health and could not afford alternate health
care coverage. The court may order the first spouse to continue covering that spouse for a
set time period.

Example 2: One spouse has a life insurance policy where the ex-spouse
is to get survivor benefits. The court may
order this to continue and/or award the ex-spouse a cash award to get new coverage.

Settling Disputes in a Divorce Case with Property and
Asset Division

Burns Ind. Code Ann. §31-15-7-10 governs the enforcement of
property division orders. The courts may
enforce the order through contempt, an income withholding order or any other
remedies at its disposal.

The trial court receives broad discretion in property
division and orders are not modified unless there was a clear abuse of
discretion in the trial court's reasoning.
All evidence must be presented at the time of the property division
since you can not get an order changed for forgetting to mention something in
the earlier proceeding.

Help From an Indiana
Property Divorce Lawyer

It can not be stressed enough that retaining an Indiana
property divorce lawyer is key to getting the fairest and most equitable result
in the property division phase of a divorce.
The lawyer can provide professional guidance, keep you informed of
likely outcomes and help you present the best arguments and presentation to the
trial judge handling the divorce.